Friday, June 22, 2012

Gold Standard Ventures Corp. (GSV) Nails Down $20M Public Offering, Plans to Develop Flagship Nevada Gold Project

Gold Standard Ventures has relentlessly pursued a very clear strategy since the company’s inception to go after district-scale lockdown of gold mineralized acreage in Nevada and issued a report today detailing their latest effort to muscle out gold production, with the move to sell 10M shares of GSV common stock, raising proceeds that will fund exploration/development.

Emphasis will be placed on developing the company’s flagship project in Elko County, the some 21k-acre Railroad Project (adjacent to Newmont Mining’s Rain/Emigrant mines), which features rich Carlin-type mineralization in collapsed breccias. In addition, ancillary drilling, exploration, and other such efforts, will benefit from the capital infusion.

Gold Standard has entered into an underwriting agreement subsequent to the June 12 public offering that will effectively yield a placed share price of $2.00/common share, bringing in $20M in gross proceeds (short form base PREP prospectus filed with relevant Alberta, British Columbia, and Ontario securities regulators; associated registration statement filed with the SEC). The agreement was with principal agent Dahlman Rose & Company, LLC, which, acting as book-running manager, represents a syndicate of entities, including the primary co-lead managers, Casimir Capital Ltd. and TD Securities Inc., as well as co-manager Macquarie Capital Markets Canada Ltd. In addition, GSV has granted a 1.5M common share over-allotment purchase option to the syndicate of underwriters, exercisable within 30 days of closing at the offer price.

We have a target date of June 27 for the closing (subject to customary condition/terms including completion of regulatory approvals) and Gold Standard Ventures has already applied for relevant TSX Venture Exchange and NYSE listings (listing pending satisfaction of respective exchange requirements).

Since the Railroad District acquisition back in 2009, GSV has been hard at work. The recent gold discovery last year in the primary north/south trending Bullion Fault Zone Target, which produced returns in the 4.26g/t Au range over 184 feet (hole RR 11-16), including 7.03 g/t Au over 60 feet, is a firm testament to the potential at the Railroad Project. Analysis of the site geology gives very strong indicators that this project alone has the potential for multi-million ounce deposit recovery, given the size of intrusive high-grade drill intercepts in the historical record, the structural complexity of the mineralized zones, and the most recent data which supports this line of reasoning.

That same structural complexity has led to many of the outlying targets, which are quite good in themselves, to remain largely unexplored. The company has identified several that will be aggressed with the new capital, via target assessment, as well as core/reverse circulation drilling.

Great news for the company’s rich flagship site in the Carlin Trend, but GSV also has a larger, more diverse precious metals acreage footprint in their pocket as well, with their East Camp Douglas (5.5k acres), Crescent Valley North (3.4k acres), East Bailey (1.8k acres), Robinson (early-stage Independence-Eureka belt targets), and Safford Claims Silver Project all contributing to shareholder value.

The company is constantly moving to execute on organic growth vectors, helmed by an extremely astute team of industry professionals that have proven themselves able to maintain momentum with a successful exploration methodology. The recent Railroad discoveries put GSV in prime position (especially with this kind of capital on hand) to execute on some serious gold production.

For more information on the underwriting agreement, or to learn more about Gold Standard Ventures Corp., please visit the company’s website at: www.GoldStandardV.com

A copy of the SEC/Canada prospectus filings is attainable from Dahlman Rose & Company via email prospectus@drco.com or telephone (212-920-4521).

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